Big Cyprus Depositors May Lose 60% of Money

That's way higher than first reported

By John Johnson, Newser Staff

Posted Mar 30, 2013 11:11 AM CDT

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Big Cyprus Depositors May Lose 60% of Money — A beggar sits outside a Bank Of Cyprus UK branch in central London. (AP Photo/Lefteris Pitarakis)

They call it a "haircut," but it's more like a scalping now. The Bank of Cyprus might end up taking 60% of the money held by rich depositors—about double previous estimates—reports the Financial Times. As part of the bailout deal, the bank will first take 37.5% from accounts that have more than 100,000 euro, reports AP. But bank officials also reserve the right to grab another 22.5% of the original amount in a second raid. Technically, the money is being converted into bank shares, giving depositors a chance of getting all their cash back, but the chances of that happening aren't so hot. (Read more Cyprus stories.)